GBPUSD: Prefer to sell rallies
|GBPUSD: 1.2976
Sterling remained rangebound on Wednesday, running into good offers ahead of 1.3000 although it did move to a new 8 month high 1.2991 before finishing the day at 1.2960.
The momentum indicators remain mixed and we may be in for more of the same in the coming session, although if the US$ does remain under pressure, Cable will eventually see an upside break of 1.300, triggering stops, which would open the way to decent resistance at each of 1.3035 and 1.3075, and then further out to where the longer descending term trend resistance currently lies, at around 1.3135.
On the downside, 1.2900/10 will continue to act as support ahead of the 16 May low of 1.2865. Back below here could then see a move back to the 12 May low of 1.2844, to 1.2830 (4 May low) and possibly to 1.2800/10.
I mildly prefer to be long Sterling but it may be that we just chop around current levels.
| 24 Hour: Prefer to sell rallies | Medium Term: Neutral – Possible topside break? | ||
| Resistance | Support | ||
| 1.3135 | Descending trend resistance | 1.2905 | Session low |
| 1.3075 | (23.6% of 1.7191/1.1821) | 1.2864 | 16 May low |
| 1.3035 | (38.2% of 1.5017/1.1821) | 1.2844 | 12 May low |
| 1.3000 | Weekly cloud base | 1.2830 | 4 May low |
| 1.2990 | Session high | 1.2805 | 26 Apr low |
Economic data highlights will include:
Q1 Provisional GDP, Foreign Bond/Stocks Investment
Interested in GBPUSD technicals? Check out the key levels
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